New Financial Incentives Encourage Dubai's Hotel Industry to Broaden Four and Three Star Offering
| Khaleej Times, Dubai, United Arab Emirates | September 30, 2013 6:57pm
Sept. 30--The hotel investment industry was recently granted a financial incentive to develop more mid-range hotels in Dubai, in a move to swell the emirate's supply of four and three star properties.
Eligible hotels will be granted a concession on the standard 10 per cent municipality fee which is levied on the room rate for each night of occupancy.
The initiative is designed to incentivise hotel owners to bring forward their construction timelines, creating more three and four star hotel rooms in Dubai more quickly. It is the result of collaboration between government partners Department of Tourism and Commerce Marketing (DTCM) and Dubai Municipality and part of the DTCM's strategy to achieve Dubai's Tourism Vision for 2020, which aims to attract 20 million annual visitors to Dubai by 2020.
Helal Saeed Almarri, director general of DTCM said: "In order to achieve our headline objective of 20 million visitors per year by 2020, we need to both increase the overall stock of hotel rooms in Dubai and widen the range of options for visitors. In recent years the number of three and four star establishments has increased, but it's vital that we continue to engineer the growth of this range."
"A number of hotel properties are either under construction or in the planning stages in Dubai and this incentive has been designed to bring those properties to market sooner," added Almarri.
Investors in new hotels will be granted a waiver on the fee for a period of four years from the date the permit to construct is granted and provided that this date is between October 1, 2013 and December 31, 2017.